RISHABH FOOD PRODUCTS LTD. ANNUAL REPORT 2000-2001 DIRECTORS' REPORT To The Members, Your Directors are pleased to present the 12th Annual Report and the Audited Statement of Accounts of the Company for the year ended on 31st March, 2001. PERFORMANCE During the year under review, your company has achieved only a small turnover amounting to Rs.1.20 lac compared to a turnover of Rs.10.61 lacs of the previous year. As the members are aware, the Company has been facing acute financial problems since the time it became sick and that is the reason why the operational activities are almost negligible. The total loss of the year under review is of Rs.145.53 lacs (Previous Year Rs.140.75 lass) after providing interest of Rs.125.69 lacs (Previous Year Rs.97.38 lacs). As there was no operational activity, no depreciation has been provided (Previous Year Rs. 22.66 lacs). FUTURE OUTLOOK As the members are aware, the company had become a sick company and had been registered as such with Hon'ble BIFR. The hon'ble BIER has recommended to the hon'ble High Court of Punjab & Haryana, that the company is not viable and should be wound up. The hon'ble High Court has since appointed an official liquidator. DIVIDEND In view of the losses, the Directors are unable to recommend any dividend. PUBLIC DEPOSITS The company had not received any deposit from the public and there was no outstanding Deposit as on 31st March, 2001 PARTICULARS OF EMPLOYEES There was no person in receipt of remuneration which in aggregate was not less than Rs.3,00,000 per annum, if employed throughout the financial year or Rs.25,000/- per month, if employed for a part of the financial year. Hence, the details u/s 217(2A) of the Companies Act, 1956, are NIL. DIRECTORS' RESPONSIBILITY STATEMENT Pursuant to provisions of Section 217 (2AA) of the Companies Act, 1956, your Directors confirm as under: 1. That in the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departure; 2. That the Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for that period; 3. That the Directors had taken proper and sufficient care for maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; 4. That as the company had become a SICK company in Aug., 1997 but as there were a little activities amounting to Rs 1.20 lacs during the year 2000-01, the accounts have been prepared on the concept of "Going concern basis". PARTICULARS Or CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The information/details required u/s 217(1)(e) of the Companies Act, 1956 are "Nil". DIRECTORS Mrs. Shyam Singh, Chairman, retires by rotation pursuant to provisions of Sections 256 and 257 of the Act and being eligible offers himself for re- appointment. AUDITORS M/s. R.Bhargava & Associates, Chartered Accountants, who are the statutory auditors retire at the ensuing annual meeting, but they are eligible for reappointment. Their observations are explained in the "Notes on Accounts" which are self-explanatory. ACKNOWLEDGEMENT The Board of Directors takes this opportunity to thank various Financial institutions, Banks, Govt. Departments and local authorities for their co- operation and help. On behalf of the Board of Directors For RISHABH FOOD PRODUCTS LTD. (SHYAM SINGH) CHAIRMAN Place: New Delhi Dated: 15th OCT., 2001